The mediator builds trust and assists the parties to reach an agreement.
Other than when asked directly, and then only to a certain extent, the mediator will not give legal advice, nor advocate for either party, even if the mediator is an attorney.
The mediator tells each participant that he/she should seek out independent legal advice. The more comfortable the parties are with the mediator, the less likely they are to actually follow this advice, figuring, no doubt correctly, that the mediator is not likely to try to take advantage of them.
What the party may fail to realize or appreciate is that the mediator is completely neutral. So, if the party is mistaken about the law, the mediator will not disabuse the party of their mistaken assumptions. In fact, this will very often not even come to the attention of the mediator, as the mediator is trained to ask different questions than an attorney who is representing (i.e., advocating for) a party.
Even in mediation, the normal rules apply - don't sign any important legal documents until you have consulted with an attorney and are sure you understand the legal and practical significance of the document.
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